Cedi: Payments Company Wise Suspends Transfers In Ghana Cedis Amid Rapid Appreciation

Cedi: Payments Company Wise Suspends Transfers In Ghana Cedis Amid Rapid Appreciation

  • Cash transfer company Wise has been compelled to suspend funds transfers in Ghana cedis because of the local currency's rapid appreciation this week
  • The company says it will resume transfers in Ghana cedis once the appreciation stabilises
  • The cedi has appreciated by a whopping 47% this week in what has been described as unprecedented for a struggling currency only recently

International cash transfer company Wise has announced that it has temporarily suspended transfers in Ghana cedis following the currency’s rapid appreciation against the dollar and other major foreign currencies this week.

According to a Reuters’ report a spokesperson of the funds transfer company explained on Friday, December 16 that it has become costly to transfer money to Ghana and in Ghana cedis.

Wise has suspended cedi transfers over volatility.
L-R: A holds cedi notes, creative image of the Wise app and finance minster, Ken Ofori-Atta. Source: UGC, Getty Images.
Source: UGC

The suspension which came into effect on Thursday, would be restored "as soon as the situation has stabilised", according to the report.

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President Akufo-Addo says strengthening of cedi not by chance; assures that gains will be sustained

The Bank of Ghana has attributed the rise of the local currency to the IMF agreement reached for the $3 billion bailout cash, the current monetary policy and a reduction in imports.

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Cedi Appreciates In Value Again Selling For GH¢8 To $1 On Interbank Market, GH¢10.50 On Forex Market

The cedi began the week on a good note and sustained its appreciation until close of the week on Friday, December 16, 2022.

Although the local currency depreciated by more than 50% against American greenback between January and November 2022, it has had a good run in the last couple of weeks appreciating significantly everyday.

The cedi is trading on Friday at GH¢8 to a US dollar on the Bank of Ghana-backed interbank market.

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Credible data show that the cedi is up 47% this week against the dollar, in what has been described as a record appreciation for a currency that only last week had been among the year's worst performers.

Rapid Appreciation of Cedi Against Dollar Stirs Concerns

Meanwhile, YEN.com.gh has reported in a separate story that while the cedi's rapid appreciation has been a relief for the business community and ordinary Ghanaians, three experts are not convinced that the rapid rise is worth celebrating.

Bright Simons, Prof Godfred Alufar Bokpin and Emmanuel Darkwa want Ghanaians to be measured in their excitement because the appreciation of the cedi is not founded on sound economic indicators.

"There is literal jubilation on the streets as the Ghana Cedi surges against the dollar. The people deserve this happiness after the stress of recent months. But the leaders should worry about ANY wild swings. Volatility of this type is a sign of fever not recovery," he tweeted on Thursday, December 15, 2022.

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Source: YEN.com.gh

Authors:
George Nyavor avatar

George Nyavor (Head of Politics and Current Affairs Desk) George Nyavor writes for YEN.com.gh. He has been Head of the Politics and Current Affairs Desk since 2022. George has over 9 years of experience in managing media and communications (Myjoyonline and GhanaWeb). George is a member of the Catholic Association of Media Practitioners Ghana (CAMP-G). He obtained a BA in Communications Studies from the Ghana Institute of Journalism in 2010. Reach out to him via george.nyavor@yen.com.gh.

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